“I have received a proposal from a producer to have the March acetone price follow the propylene increase. I accepted it, which means the price would go up by €64/tonne,” the major consumer said.

“I felt a higher increase would have been inappropriate because I do not see a tight acetone market. Phenol production is doing well,” he added.

The major producer confirmed that the March acetone MMA contract price settled on a gross basis at €1,208.50/tonne FD NWE, up by €80/tonne, and on a net basis at €967/tonne FD NWE, up by €64/tonne.

Although the higher acetone MMA contract price was solely based on the increase in the price of propylene, acetone spot prices were currently at their highest levels since April last year, also driven by propylene as well as by strong demand and concerns about supply.

Acetone spot prices were currently valued anywhere between €900-1,000/tonne FD NWE, and in some cases even higher than €1,000/tonne. Such a range marks an increase of €100-160/tonne in less than a week.